Oil, natural gas liquids production to jump by 36% on inauguration of Pecan field
Ghana’s energy sector has seen significant growth and development in recent years, particularly in the oil and gas industry. The country has become a major player in the region, with significant reserves and production capacity. However, the industry has also faced some challenges, including declining production in existing fields and a lack of new projects in the pipeline. The upcoming inauguration of the Pecan field is expected to provide a significant boost to Ghana’s energy sector, reversing declines in production and driving growth over the medium term.
According to Fitch Solutions, Ghana’s crude oil, natural gas liquids (NGL), and other liquids production is expected to reverse declines in the near term, with medium-term growth anticipated from 2027. The inauguration of the Pecan field is a key driver of this growth, with a Final Investment Decision (FID) expected to be reached by 2024. Based on previous production estimates by Aker Energy, first oil is expected to be achieved within 35 months of the FID, meaning production is likely to begin by 2027.
This boost in production, Fitch Solutions asserts, will result in a rebound in liquids production for Ghana, with an estimated 36% jump between 2023 and 2028, reaching 196,000 barrels per day (b/d). The Pecan field, with an estimated production capacity of 110,000 b/d, will make up the majority of this increase, as existing fields such as Jubilee, TEN, and OCTP mature and face natural output declines. Production is expected to peak in 2029 at 198,000 b/d before declining by an average of 3% per year until 2032, due to the lack of additional projects in the pipeline.
The successful development of the Pecan field will be a significant milestone for Ghana’s energy sector, providing a much-needed boost in production and helping to secure the country’s position as a major player in the region. The estimated recoverable reserves of 334 million barrels of oil equivalent will provide a significant resource for the country, helping to meet growing domestic demand while also providing opportunities for export.
However, the industry still faces challenges, including the need for further investment in infrastructure and exploration to identify new resources and ensure sustainable long-term growth. The government of Ghana has taken steps to address these challenges, including the introduction of new legislation to encourage exploration and the development of the country’s natural resources.
The inauguration of the Pecan field is set to provide a significant boost to Ghana’s energy sector, reversing declines in production and driving growth over the medium term. However, the industry still faces challenges, and continued investment and innovation will be necessary to ensure sustainable long-term growth and secure Ghana’s position as a major player in the region’s energy industry.
